OOMA Stock Analysis: Buy, Sell, or Hold?

OOMA - Ooma, Inc. Common Stock

SERVICES-COMPUTER PROCESSING & DATA PREPARATION
$11.95
0.20 (1.66%) ▲
5d: -1.28%
30d: +1.83%
90d: +8.2%
BUY
MODERATE Confidence
Last Updated: February 2, 2026
Earnings: Mar 03, 2026 28d

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Interactive Price Chart (1 Month)

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💡
Bottom Line:
💡 BUY OPPORTUNITY: OOMA shows positive signals but monitor for confirmation. Market pricing in 11.0% decline. Moderate conviction.

Long-Term Wealth Forecast (2031)

Based on Analyst Consensus Growth & Historical Valuation

0% (Stagnation) 50% (Hyper Growth)
EST. PRICE IN 2031
$32.40
Based on 14.5% avg growth
INTRINSIC VALUE TODAY
$20.12
40.6% Margin of Safety

How this is calculated: We use a Growth Decay Model: starting with analyst consensus growth (adjusted above) and gradually slowing it down to a long-term terminal rate (4%) by Year 5. This provides a more realistic valuation than assuming constant hyper-growth. We then apply a 13.1x Exit PE.

In-depth Analysis How we analyze

Valuation Analysis: OOMA is currently trading at $11.95, which is considered slightly high relative to its 30-day fair value range of $11.49 to $12.05. From a valuation perspective, the stock is trading at a discount (Forward PE: 9.2) compared to its historical average (13.1). Remarkably, the market is currently pricing in an annual earnings decline of 11.0% over the next few years. This aligns with recent fundamental challenges.

Technical Outlook: Technically, OOMA is in a downtrend. Immediate support is located at $11.39, while resistance sits at $12.34.

Market Sentiment: The stock shows a mixed technical setup (55/100), with neutral trendline and momentum signals. In the options market, Implied Volatility is low (17th percentile), suggesting options premiums are relatively cheap. This makes it an attractive time for long options strategies if you have a directional bias. Wall Street analysts see significant upside, with an average price target of $18.56 (+58.0%). Combining these factors, the current setup offers a favorable risk/reward ratio for buyers.

Quick Decision Summary

Current Position SLIGHTLY HIGH
Fair Price Range $11.49 - $12.05
Company Quality Score 60/100 (BUY)
Options IV Signal 17th percentile (COMPLACENCY WARNING)
Volume Confirmation HIGH
Confidence Score 71.9%

All Signals

  • BULLISH: Options cheap (IV 17th percentile)
  • NEUTRAL: Mixed technical signals (55/100)
  • BULLISH: High volume confirmation
  • BULLISH: Trading 58.0% below Wall St target ($18.56)

Fair Price Analysis

30-Day Fair Range $11.49 - $12.05
Current vs Fair Value SLIGHTLY HIGH
Expected Move (7 Days) ±$0.71 (6.0%)

Support & Resistance Levels

Support Level $11.39
Resistance Level $12.34
Current Trend Downtrend

Fundamental Context

Forward P/E (Next Year Est.) 9.25
Wall Street Target $18.56 (+58.0%)
Revenue Growth (YoY) 3.8%
Profit Margin 0.9%
Valuation Discount vs History -11.0% cheaper
PE vs Historical 9.3 vs 13.1 CHEAP
Market-Implied Price Targets If current PE multiple persists
Implied Growth (YoY): -11.0% (market-implied from PE analysis)
1-Year Target $10.57 (-10%)
2-Year Target $9.52 (-19%)
3-Year Target $8.57 (-27%)
3-Yr Target (if PE normalizes) (PE: 9→13) $12.13 (+3%)
3-Year Scenarios Using analyst projected EPS growth
Bull: (PE: 22.3, Growth: 26.8%) $57.77 (+392%)
Base: (SPY PE: 9.3, Growth: 26.8%) $23.97 (+104%)
Bear: (PE: 7.9, Growth: 26.8%) $20.37 (+73%)
📈 Valuation based on Current Earnings
RECOVERY PLAY: Stock looks expensive now (10x PE), but valuation improves significantly next year (9x PE) as earnings recover.
Forward PE: 9.98 | Forward EPS (Implied): $1.18
Bull Case $14.19 (+21%)
Analyst growth 15.0%, PE expands to 10.5
Base Case $11.75 (0%)
Market implied 0.0%, PE stable at 10.0
Bear Case $8.99 (-24%)
Severe decline -15.0%, PE contracts to 9.0
These are projections based on PE multiples and EPS growth scenarios, not predictions. Actual results may vary significantly.
💡 Upside Surprise Potential
If earnings stabilize (0% growth), PE could expand from 9.3 to 13.1
Stabilization Target: $16.64 (+41.6%)
PE Expansion Potential: +41.6%
Last updated: February 02, 2026 2:34 PM ET
Data refreshes hourly during market hours. Next update: 3:34 PM
🔥 Top Stocks Breaking Out Now
Ticker Score Recommendation Change %
Technical Signals Check
Insider Activity (6 Months)
0
Buys
2
Sells
Net
INSIDERS SELLING
Recent Transactions
Eric B Stang SELL 19265 shares 2025-09-04
Shigeyuki Hamamatsu SELL 7335 shares 2025-09-04

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